Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the prior quarter, driven by higher operating cash flow and lower capital expenditure. However, free cash flow and margin weakened versus the same quarter last year.
- Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, while capital expenditure declined from both periods. The resulting free cash flow and free cash flow margin improved sequentially but declined year-over-year.
- Compared to the prior quarter, free cash flow and margin improved, supported by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow and margin weakened, as operating cash flow was lower despite reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$752.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$269.0M
Capital spending and related asset purchases.
FCF margin
12.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-09-30 | $6.3B | $1.9B | $405.0M | $1.5B | 24.0% |
| 2023-12-31 | $6.0B | $2.0B | $358.0M | $1.6B | 27.1% |
| 2024-03-31 | $6.0B | $767.0M | $375.0M | $392.0M | 6.5% |
| 2024-06-30 | $6.3B | $1.0B | $269.0M | $752.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow. This improvement was the strongest observable driver of the sequential change.
The sequential improvement in free cash flow was primarily attributable to the increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, while capital expenditure declined from both periods. The resulting free cash flow and free cash flow margin improved sequentially but declined year-over-year.
Compared to the prior quarter, free cash flow and margin improved, supported by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow and margin weakened, as operating cash flow was lower despite reduced capital expenditure.
Monitor the trend in operating cash flow, as it declined year-over-year while revenue remained stable.